Net loss per share
The computation of basic net loss per share is based on the weighted-average number of our common shares outstanding during the period. The computation of diluted net loss per share is based on the weighted-average number of our common shares and dilutive potential common shares, which primarily include shares that may be issued under our stock option, RSU, and Employee Stock Purchase Plans ("ESPP") (collectively, "dilutive securities") as determined under the treasury stock method.
The following table sets forth the computation of basic and diluted net loss per share (in millions, except per share data):
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| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Net loss (Numerator): | | | | | |
| Net loss | $ | (353) | | | $ | (283) | | | $ | (307) | |
| Weighted-average shares (Denominator): | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Weighted-average shares for basic and diluted EPS | 107.4 | | | 90.1 | | | 74.0 | |
| | | | | |
| Net loss per share | | | | | |
| Basic and diluted | $ | (3.29) | | | $ | (3.14) | | | $ | (4.15) | |
The following table summarizes potentially dilutive securities excluded from the computation of diluted net loss per share calculations because they would have been antidilutive (in millions):
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| At December 31, |
| 2025 | | 2024 | | 2023 |
| Common stock options issued and outstanding | 16.9 | | | 15.5 | | | 13.5 | |
| Restricted stock units issued | 2.9 | | | 2.2 | | | 1.5 | |
| Employee Stock Purchase Plan shares | 0.5 | | | 0.3 | | | 0.3 | |
| Total potential dilutive securities | 20.3 | | | 18.0 | | | 15.3 | |
We have also excluded the effect of Gilead’s right to purchase additional shares of our common stock, which expired in July 2025, from the calculation as these rights had no intrinsic value at December 31, 2024 or 2023.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.